The federal government has announced the implementation of a flat 0.6 per cent tax for individuals who are not listed on the Federal Board of Revenue’s (FBR) Active Taxpayer List (ATL). This taxation policy, as outlined in the budget documents, aims to facilitate the documentation of the economy.
As per the official document, the government has chosen to impose a tax rate of 0.6 per cent on cash withdrawals exceeding Rs50,000.
The primary objective behind this initiative is to record the cash withdrawal data of individuals who are not on the ATL and encourage them to increase their transactional expenditure. The intention is to attract more individuals to become part of the tax system.
It is important to note that this legislation was previously in effect but was repealed by the previous administration through the Finance Bill 2021. However, certain significant measures introduced under the Finance Act 2022 to address non-compliance were not effectively enforced.
Consequently, the government has now made the decision to strictly enforce these measures in order to enhance the country’s tax revenue.
